Financing a Property Mortgage Interest Development
Our forecasts are valuable tools for selecting mortgage models and terms. You can have our mortgage interest forecast sent to you quarterly by newsletter.
Mortgage Interest Rates Will Remain at Very Low Levels in 2018
We expect to see very good overall economic conditions this year. GDP growth is likely to accelerate noticeably to 1.7% and a slight decline in the unemployment rate is anticipated. In addition, there is positive news about economic performance in the euro zone, which should also benefit Switzerland. The rate of inflation is expected to remain at a low level of 0.5% in 2018. The Swiss National Bank (SNB) can therefore continue putting the development of the Swiss franc at the forefront of its monetary policy. It still regards the CHF as being overvalued. Accordingly, we expect that the SNB will leave the target range for key interest rates unchanged at between –1.25% and –0.25%. The interest rates for Flex rollover mortgages are therefore expected to remain at their current lows over the next 12 months. A sideways movement is likewise anticipated in the case of Fix mortgages with a short and medium term. On the other hand, interest rates for Fix mortgages with a long term are likely to rise slightly, by 15 to 40 basis points, over the coming 12 months. But by historical standards, interest rates for mortgages with long terms will remain low. As last year, upward and downward spikes must be expected for all maturities.
|08.01.2018||3 mths||6 mths||12 mths|
|Flex rollover mortgage1
|Fix mortgage (3 years)2
|Fix mortgage (5 years)2
|Fix mortgage (10 years)2
|Fix mortgage (15 years)2
The interest rates listed are indicative values and apply to top-quality residential property and borrowers with impeccable creditworthiness.
1 Flex rollover mortgage (framework term three years). Interest rate based on three-month CHF LIBOR. Interest rate adjusted every three months.
2 Fix mortgages. Fixed term and interest rate for the entire term.